Excel corp slumps on endosulfan ban

Shares of Excel Corp Care plunged 15.9% to Rs 175.95 on Monday after the Supreme Court on Friday banned the manufacture and sale of insencticide, endosulfan, citing its harmful effects on human life. The court will take a final decision after eight weeks on whether to continue with the ban on the basis of report from Indian Council of Medical Research.

Investors in Excel are bracing for an adverse verdict in the case. Brokers said the ban may affect company’s earnings, as endosulfan contributes about 35% to its revenues. It is not widely tracked by analysts. A broker, who tracks the company, said though the stock is trading at steep discount to the valuations of some of its peers, investors may not buy the stock again soon unless the company throws light on its future plans.